OK, I think I get it: what Google wants to do is to give viewers the option of paying a flat rate, which will remove ads from all of the music videos on the site as part of their streaming service. And they need the labels to agree to these terms. And if they DON'T agree to the terms, then Google would have one of three options: either maintain the status quo (which they don't want to do), show those videos sans ads (which would be a copyright infringement since the artists wouldn't be paid as per the original license agreement), or remove the videos altogether.
Does that sound right?
If so, that doesn't sound nearly as evil as it first sounded, if Google is only taking down videos that it was basically paying to host.